Client background: A leading 3PL solutions provider
Industry: Transportation & Logistics
Products/Services: Advanced Analytics
Business Challenge
Increasing customer churn rates
Understand factors leading to churn
Predict potential customers who are likely to churn
Roll out retention measures to keep customers with them and increase count of loyal customers
Business Solution
Gained understanding of churn objectives from the client’s perspective
Identified and extracted relevant attributes
Performed Exploratory data analysis to evaluate effect of data fields leading to customer churn
Built churn prediction model using Classification and Regression Tree (CART)
Business Benefits
The predictive churn model built attained 91% accuracy
Identified critical areas that sought more focus to reduce churn rate
Predicted customers who were about to defect
Rolled out proactive measures to reduce customer churn
Converted low-revenue customers into profitable ones
Environment
Tableau
R
